City Size and the Demand for Local Public Goods

Büttner T, Holm-Hadulla F (2013)


Publication Type: Journal article

Publication year: 2013

Journal

Publisher: Elsevier

Book Volume: 43

Pages Range: 16-21

URI: https://www.finanzwissenschaft.rw.fau.de/files/2020/03/popitz_final.pdf

DOI: 10.1016/j.regsciurbeco.2012.10.003

Abstract

This paper studies how size-induced cost differences in the provision of local public goods affect the efficient level of public spending. Since public goods are non-rival in consumption, the per-capita cost of a given level of public good provision is lower in more populous jurisdictions. We show that this cost advantage gives rise to a substitution of public for private consumption and specify conditions under which the efficient level of local public expenditures per capita rises with a jurisdiction's population size. © 2012 Elsevier B.V.

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How to cite

APA:

Büttner, T., & Holm-Hadulla, F. (2013). City Size and the Demand for Local Public Goods. Regional Science and Urban Economics, 43, 16-21. https://dx.doi.org/10.1016/j.regsciurbeco.2012.10.003

MLA:

Büttner, Thiess, and Fédéric Holm-Hadulla. "City Size and the Demand for Local Public Goods." Regional Science and Urban Economics 43 (2013): 16-21.

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